Gov’t remains committed to pension scheme –
Finance and the Public Service Minister Audley Shaw says the Government remains committed to implementing the proposed contributory public-sector pension scheme by April 2017.
Pension reform is a structural benchmark under the four-year International Monetary Fund Extended Fund Facility.
The bill to formalise proposals for the reform arrangements was retabled by Minister Shaw in the House of Representatives in August.
It proposes, among other things, that government workers contribute five per cent of their salary towards their pension; that benefits be computed using an average of the final five years of the beneficiary’s salary, instead of the final pay as now obtains.
Additionally, retirees would be given the option of receiving one quarter of their entitlements with reduced or full pension benefits.
Addressing Prime Asset Management Limited’s pension seminar at The Jamaica Pegasus hotel in New Kingston, Shaw said the reform is necessary as the administration “can no longer afford a non-contributory scheme”. He noted that the annual pension bill is $26 billion, and that the figure is growing.